Star Equity (NASDAQ:STRR – Get Free Report) and Aclaris Therapeutics (NASDAQ:ACRS – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for Star Equity and Aclaris Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 0 | 0 | 0 | 0 | N/A |
| Aclaris Therapeutics | 0 | 6 | 0 | 0 | 2.00 |
Aclaris Therapeutics has a consensus target price of $9.00, indicating a potential upside of 656.30%. Given Aclaris Therapeutics’ higher probable upside, analysts clearly believe Aclaris Therapeutics is more favorable than Star Equity.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -14.65% | -5.74% | -3.34% |
| Aclaris Therapeutics | -183.28% | -53.18% | -41.74% |
Valuation & Earnings
This table compares Star Equity and Aclaris Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $47.15 million | 0.27 | $25.13 million | $6.50 | 0.62 |
| Aclaris Therapeutics | $32.02 million | 2.65 | -$88.48 million | ($1.09) | -1.09 |
Star Equity has higher revenue and earnings than Aclaris Therapeutics. Aclaris Therapeutics is trading at a lower price-to-earnings ratio than Star Equity, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Star Equity has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Aclaris Therapeutics has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.
Insider and Institutional Ownership
3.8% of Star Equity shares are owned by institutional investors. Comparatively, 98.3% of Aclaris Therapeutics shares are owned by institutional investors. 28.8% of Star Equity shares are owned by company insiders. Comparatively, 6.4% of Aclaris Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Star Equity beats Aclaris Therapeutics on 8 of the 12 factors compared between the two stocks.
About Star Equity
Star Equity Holdings, Inc. engages in the construction business in the United States and internationally. It operates through two segments: Construction, and Investments. It manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.
About Aclaris Therapeutics
Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.
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